Alaska has recently experienced a surge in various scams targeting residents and local governments. These fraudulent activities range from sophisticated phishing schemes to deceptive in-person cons.
Awareness and vigilance are crucial in protecting oneself and the community. Here are five prevalent scams currently affecting Alaskans:
- Electronic Benefits Transfer (EBT) Fraud and Skimming
In recent months, there has been a notable increase in EBT fraud across Alaska. Scammers employ skimming devices on point-of-sale terminals, ATMs, and gas pumps to steal card information from unsuspecting users. During an outreach operation in August 2024, the U.S. Secret Service, in collaboration with state and local law enforcement, inspected over 1,750 devices across several Alaskan cities, recovering two skimming devices. This operation highlighted the growing threat of skimming, which costs consumers and financial institutions over $1 billion annually. citeturn0search1
Protective Measures:
- Inspect ATMs, gas pumps, and point-of-sale terminals for any signs of tampering before use.
- Use debit cards as credit to avoid entering PINs in potentially compromised machines.
- Regularly monitor account statements for unauthorized transactions.
- Inspect ATMs, gas pumps, and point-of-sale terminals for any signs of tampering before use.
- Municipal Phishing Scams
Local governments in Alaska have fallen victim to phishing scams resulting in significant financial losses. In one instance, the city of Ketchikan lost nearly $20,000 after scammers sent a fake invoice through a spoofed email address resembling that of a legitimate infrastructure firm. The fraudulent email contained an invoice with accurate information, leading city officials to process the payment. The scam was only discovered when the legitimate firm followed up on the unpaid invoice.
Preventive Actions:
- Verify the authenticity of invoices, especially those received via email, by contacting the vendor directly through known channels.
- Implement multi-factor authentication for financial transactions.
- Provide specialized training for staff to recognize phishing attempts and fraudulent communications.
- Verify the authenticity of invoices, especially those received via email, by contacting the vendor directly through known channels.
- Contractor Impersonation Scams Post-Disaster
Following natural disasters, scammers have targeted homeowners by impersonating local contractors. After the August 2023 glacial outburst flood along the Mendenhall River, at least one Juneau resident lost over $50,000 to such a scam. The fraudsters sent fake invoices using the real contractor’s logo and details, deceiving homeowners into making substantial payments.
Safety Tips:
- Always verify the identity of contractors by contacting them through official channels before making payments.
- Be cautious of payment requests via wire transfer or unconventional methods.
- Discuss payment terms and methods in person or through verified communication channels.
- Always verify the identity of contractors by contacting them through official channels before making payments.
- Good Samaritan Jewelry Scam
Scammers in Anchorage and Eagle River have exploited the goodwill of residents by posing as foreigners in distress, claiming they need to sell jewelry to secure quick cash for travel. The jewelry sold is fake, and victims have lost thousands of dollars. The suspects are well-dressed and approach individuals in parking lots or by the roadside with vehicles that appear broken down.
How to Avoid:
- Be skeptical of unsolicited offers to purchase valuables, especially in unconventional settings.
- Avoid making hasty financial decisions based on emotional appeals.
- Report suspicious approaches to local law enforcement promptly.
- Be skeptical of unsolicited offers to purchase valuables, especially in unconventional settings.
- SNAP Benefits Theft
Individuals relying on Supplemental Nutrition Assistance Program (SNAP) benefits have been targeted by thieves who drain funds from their accounts. In one case, a disabled woman from Anchorage lost her last $400 due to such theft. The Alaska Division of Public Assistance has acknowledged the issue and is working to transition to chip-enabled EBT cards to enhance security. However, reimbursement for stolen benefits has been challenging, especially after federal reimbursement programs expired.
Recommendations:
- Regularly change PINs associated with EBT cards.
- Monitor account balances frequently to detect unauthorized transactions early.
- Report lost or stolen cards immediately to the appropriate authorities.
- Regularly change PINs associated with EBT cards.
In conclusion, the rise in scam activities across Alaska underscores the importance of vigilance and proactive measures. Residents and local governments alike must stay informed about prevalent scams and adopt recommended practices to safeguard against financial losses. By fostering a community aware of these threats, Alaskans can better protect themselves and their neighbors from falling victim to fraudulent schemes.
